Your business is so much beyond a business plan. Just focussing on your business plan is not the fool proof way of working. In this post I’ll share my view on 5 things that won’t happen in business plan.
Created your business plan? You are feeling confident about the way you are going to take your business to new heights. Bravo!!
This is a good start. But you need to remember that scope of your business is much more than your business plan. So, let me tell you about things that won’t happen in a business plan.
Answering why are you doing this business?
Why are you doing this business? It is a fundamental question. It cannot be answered by creating a business plan. This is personal and requires a great deal of clarity at your end. You need to answer why are you doing this business and not any other business?
Are you motivated by money or returns? Is it your passion? Or you are doing this out of charity?
There may be N reasons why are you doing this business. It is must for you to have absolute clarity to do this business for the right reasons.
Understanding if your business idea is commercially viable?
Business plan is a strategic tool. It gives you visibility how can business expand with assumptions and number frameworks in place.
Nevertheless, it does not and cannot ensure business viability nor guarantee commercial success of the business.
Further, it is important that you also research whether your offering will add value to the customer.
Do answer the following questions:
- Is the customer is willing to pay for it?
- What price is right to keep business afloat?
- What price is required to make business profitable?
- What price can you charge your customer?
“In modern business age where business scenarios are highly dynamic, your ignorance might prove fatal for your business.”
Giving you clarity regarding your personal finance needs and liabilities.
Do you know what to expect when you start business? The answer is expect anything. Having a business does not guarantee profits from day one. Also, there is no guarantee that business profits are sufficient to meet your personal expenses as well as fund future business activities.
Firstly, it is must to have clarity regarding sustaining your family. Especially if you are the sole bread earner.
Secondly, answer this. How will you manage your liabilities? At the same time how will you invest in your business to expand it?
Thirdly, understand that you are responsible for events in your business. Even if your business is not profitable or you do not understand something (eg., product liability, employee claims, tax defaults).
Making you to a business expert from being a functional or domain expert.
,facYou may have a brilliant product or an idea. However, selling it to customers as well as managing a business requires different skill set altogether.
You being a functional expert does not mean you have expertise in all facades of business. Faster you understand this fact is better for your business as well as for you.
Do you have limited exposure to multiple business functions? If yes, then do not hesitate to take help from experts or consultants.
It is great to learn from one’s mistake! However, in modern business age where business scenarios are highly dynamic, your ignorance might prove fatal for your business.
Transforming you into a Leader.
Your business will evolve. You need to evolve along with it. Most of those starting new business are ignorant of this fact. They believe that their persona is fit for the business that they have planned.
In-fact, your failure to lead your business means that you are the biggest factor that is limiting growth of business. In worst case scenario, you will remain ignorant to personal limitations. And you’ll keep looking outward for reasons for stagnancy or lack of business profitability.
Remember your vision for your business and self must evolve with your business. You need to undergo personal changes to keep up with business and market growth.
You must be ready to tackle this aspect of business that even the best of business plans cannot deliver.
Do remember, creating a business plan is one aspect of busines. Your failure in its methodological implementation and not making critical modifications can break your business.
So, these were Top 5 things that won’t happen in a business plan. These pointers have tremendous impact on your personal and business success. Do comment to let me know if you agree with me or want to add something to this post. Share this post if you like it 🙌
If you need help with your business, please reach out to me using Contact Page.